subject: Money-Saving Real Estate Investment Properties [print this page] Money-Saving Real Estate Investment Properties
The real estate market has witnessed extreme changes in the past four years. Property owners have experienced tremendous financial loss. Banks have endured more foreclosures in one year than were recorded over a decade. Investors have been forced to liquidate properties for pennies on the dollar.
In the past, real estate was one investment people could count on. Homeowners bought property to build their retirement nest egg by accruing home equity. Families yearned to live the American Dream and raise their children in suburban communities. Investors earned a good living through house flipping and rental properties. Now, people are left scratching their heads and wondering if buying real estate is worth the risk.
While the market appears to be all gloom and doom, there are still opportunities to make money through real estate investments. There are also opportunities for people to obtain great deals when buying houses. It's just a matter of changing gears and becoming educated about the different options.
Many investors are turning to buying foreclosure homes and short sale properties to offer as rental homes. The rental market has exploded due to the number of displaced homeowners who have lost their house to foreclosure. One way investors generate positive cash flow is to offer 'owner will finance' options such as lease options, rent-to-own contracts, and seller carry back mortgages.
One resource that investors and individual buyers who are interested in buying foreclosure homes should consider is Fannie Mae Homepath properties. This government-sponsored program offers residential homes at discounted prices, along with the opportunity to obtain special financing through Home Path Mortgage.
A large percentage of Fannie Mae homes are eligible for government grants offered through HUDs Neighborhood Stabilization Program. HUD provides NSP grants to qualified buyers who purchase homes in neighborhoods with high rates of foreclosure. Funds must be used to rehabilitate houses or develop parcels of vacant land.
Commercial real estate can be a good investment as long as investors conduct appropriate market research. Business owners can also reap the benefits of investing in foreclosed commercial properties to start or expand their company.
Investors normally partner with investment groups to share costs and management duties associated with commercial realty. Buyers of commercial properties often qualify for tax incentives when developed properties bring new employment opportunities to the community.
Those who purchase commercial real estate should be aware of county, state, and federal laws. When property is used for commercial purposes it must be properly zoned and comply with regulations set forth in the Americans with Disabilities Act.
These are just a few ways for individuals and investors to save money and earn profits when buying real estate. Those who take time to become educated about the different types of properties for sale can make informed decisions and learn how to capitalize on the downturned real estate market.
